EUR/USD has profited from yesterday's poor US data and it has increased as much as 1.1086 level, but you can notice that the momentum was stopped for now by some major resistance levels. The USD was punished by the unexpected surge in the US unemployment claims, from 282K to 3 283K. Analysts expected the number of claims to rise by 1 648K.

So, the COVID-18 epidemic effects are worse than expected, the US Flash Services PMI drop from 49.4 to 39.1 and the enormous Jobless Claims are only the first signs that the US could step into a crisis. The coronavirus spread will continue and this pandemic will make new victims and new economic damages around the globe, and maybe the central banks will take action again soon. You should keep in mind that the USD is a safe-haven currency and any FED stimulus measures could boost the dollar.

EUR/USD has rebounded after the failure to stabilize below the lower median line (LML) of the orange descending pitchfork, the upside movement was caused by the USDX's correction. The Dollar Index has decreased aggressively from 102.98 high to 98.84 today low in only six days. You should know that the index has retreated almost 50% from the last ascending swing and it has reached a major support area.

A rejection on the USDX followed by another leg higher will force the EUR/USD to drop again in the upcoming period. Only a USDX's further drop will send the currency pair towards new highs.

EUR/USD has reached the median line (ML) of the orange descending pitchfork, the weekly R1 (1.1077) and the 50% retracement level and now it has decreased because the sellers are present around these levels.

The price could come back to pressure the 1.1 psychological level, a consolidation above this level followed by a valid breakout above the mentioned resistance levels will confirm a further increase at least till the 1.1200 - 1.1215 area.

Another drop could be signaled if EUR/USD stays below the median line (ML) and if the breakout above the 1.1000 level is a false one. Several false breakouts above the median line, above the 50% level and above the R1 (1.1077) followed by a stabilization below the 1.1 will announce that the upside movement is finished and that a bearish movement will come.

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A valid breakout above the R1 (1.1077), above the 50% level and most important above the median line (ML) of the descending pitchfork will confirm a further increase, the next major upside target remains at the 1.1200 - 1.1215 area, while the major dynamic resistance is seen at the upper median line (UML).

EUR/USD could drop again if we have only a false breakout above the near-term resistance levels and if it stabilizes below the median line (ML) and below the 1.1 level. This scenario will take shape if the USDX starts another upside movement after the massive drop. If today's candle represents only a false breakout with great separation, a shooting star, the pair could drop towards the weekly Pivot Point (1.0857) soon.